Everything you need to know about taxes when installing solar panels
Everyone agrees: the aspect that causes the most reservations when installing photovoltaic panels is the price to pay for the solar installation. However, the amount to be paid is getting lower and there are numerous subsidies with which to lower it even more. so many that the savings with solar energy are significant and the investment made can be amortized in a few years.
We delved into this a few weeks ago in the publication ‘How much is saved on the electricity bill with solar panels?’. But, beyond the price and savings, stillThere are many doubts regarding the taxes to be paid for installing solar panels. In fact, there are those who are afraid that this is something that greatly increases the investment to be made. And what many do not know is that the dreaded sun tax is no longer in force, so there is nothing to fear.
Sun tax: what is it
A few years ago in Spain it was not very profitable to install solar panels because there was the so-called sun tax.A toll on panels and solar energy that was in effect from 2015 to 2018. This tax did not affect the majority of self-consumption cases for private homes. However, it had a great impact on the development of renewable energy in our country, which was negatively affected by the tax.
There was great ignorance and the fact of thinking that a tax was going to be charged for generating energy through solar radiation caused many to give up the idea of installing photovoltaic panels. The justification for the creation of this tax was that self-consumption could be an injustice to the rest of the citizens who were paying for the electricity networks. And what led was that, although the tax did not affect the majority of consumers, it had a great negative impact on the development of renewable energies.
Repeal of the tax to promote self-consumption
The failure of this tax on the sun was such that after only three years of operation it was repealed at the hands of the Secretary of State for Climate Change Teresa Ribera. And not only was it repealed, but the legislation for self-consumption was also changed, which allowed for a new boom in solar energy to emerge in Spain and for the country not to lag behind Europe in this regard.
Since then there has been a large number of very beneficial developments for those who install solar panels in their homes:
There are no taxes for generating energy for self-consumption.
Authorization from electricity distributors is not required for installations under 15 kW.
Establishment of compensation for surpluses.
Green light for shared self-consumption.
At this point, in case there are still doubts, we are going to answer a question that clarifies everything: Do I have to pay taxes for having a self-consumption solar installation? the answer is no. There are no special taxes for these types of facilities or for the energy produced with them for self-consumption, beyond the VAT on the installation and the building permit.